Pin Debit

PIN debit transactions require that the cardholder use a PIN. A PIN pad must be located at the POS for cardholders to enter their PIN to authenticate their identity and to authorize the transaction.
A PIN debit transaction removes funds from the cardholder's checking account almost immediately as the authorization and the settlement of the transaction is a one step process. The payment itself is processed over Electronic Funds Transfer (EFT) networks, which is the same way an ATM transaction is handled. STAR, NYCE and PULSE are all well-known EFT networks.
Faster funds settlement, reduced chargebacks, and improved transaction security are all benefits of PIN debit.
It is also interesting to note that PIN debit is the preferred debit payment method for consumers, according to the annual STAR Consumer Payments Usage Study. The study found that 47 percent of consumers surveyed prefer paying with PIN debit, compared to 30 percent who prefer the signature method. Survey respondents largely cite increased security as the number one reason for choosing to use their PIN numbers to make purchases (46%).


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